蘑菇AV

Ad budgets are slowly migrating from terrestrial radio to digital platforms, but the shift is stymied by slow platform subscriber growth and by YouTube.

Focusing solely on Spotify and similar youth-dominated platforms may mean missing older audiences who increasingly turn to digital audio. The next leap in podcast effectiveness won鈥檛 come from adding more spend鈥攊t will come from allocating it more intelligently.

US eCPMs for digital video, display, and audio formats fell in Q2 2024鈥攖he average decrease was slight on a QoQ basis but more pronounced on a YoY basis.

US digital audio subscription revenues will reach $14.42 billion in 2025, nearly two-thirds (65.6%) of total digital audio revenues, according to a September 2024 蘑菇AV forecast. Spotify is the top platform for digital audio in the US, with 105.8 million listeners this year, followed by Amazon Music (54.2 million) and iHeartRadio (51.5 million).

Commerce media has already extended off-site, into other channels like connected TV (CTV) and social media, but now people are talking more about incorporating it into audio and newsletters, according to Matt Shapo, director of digital audio and video for the Interactive Advertising Bureau (IAB).

The combination of devices, digital services, and traditional formats forms a predictable media consumption pattern for media buyers. Only new formats or emerging services (like CTV in the late 2010s or digital audio and video in the early 2010s) have the potential to change this established media mix. Despite these declines, there鈥檚 still plenty of opportunity for media buyers.

Just 8% of digital audio listeners use Amazon Music most often, per SiriusXM Media, trailing Spotify (34%), YouTube Music (21%), Apple Music (13%), and Pandora (13%). Listeners across age groups spend an average of 49.7 hours per month on Spotify, compared with 0.8 hours a month on Amazon Music, per Comscore.

The 8-plus hours per day adults spend with digital media is divided among dozens of activities. Sub OTT, social networks, and digital audio take up the most time. We break out seven major uses of time and two 鈥渙ther鈥� categories that incorporate countless smaller activities.

Gen Zers continue to overtake millennials in several prominent digital activities and platforms, including social commerce, podcasts, and Instagram.

Digital time spent with CTV will overtake traditional time with TV this year. CTV time includes all forms of subscription OTT (sub OTT) streaming, free ad-supported streaming TV (FAST), digital pay TV, apps, and digital audio accessed via a CTV device. It does not include time watching traditional TV (broadcast or cable) via a CTV.

Podcast creator revenues: Revenues generated by US-based creators from podcasts on audio-first platforms like Spotify and Apple Podcasts; includes advertising, sponsored content, platform payouts (e.g., Spotify鈥檚 ad revenue sharing program), subscriptions, and other revenue streams; includes video podcasts; excludes YouTube and traditional or digital media properties that host podcasts (e.g., Patreon);

With almost half of digital media time spent watching video, large platforms pivoting to video podcasts, and 42% of US adults preferring podcasts with video components, video podcasts represent a key growth opportunity compared with audio-only options. Authenticity is the critical factor that drives listeners to connect with podcasters.